The global home appliance market is estimated to have contracted by three percent in 2009 as compared to the previous year, due to the global shrinkage in demand and lower sales volumes, according to the operational results of Arcelik, a leading Turkish home appliance manufacturer.
According to Arcelik's report, in the first ten months of 2009 overall home appliance sales in western Europe declined about four percent, while the drop in sales reached 25 percent in eastern Europe for the same period, both compared to the corresponding period of 2008.
However, despite the contraction in the overall market, the demand for LCD televisions continued to rise in 2009, with the market for this product expanding by 30 percent year on year.
The report emphasizes that the decline in global demand resulted in lower raw material costs and that the home appliance industry took advantage of this environment.
In the year in question, home appliance manufacturers continued their efforts to switch their production from countries with higher production costs to locations where they can enjoy lower output costs. Consolidations in the sector proceeded through acquisitions and mergers. Particularly, in China, significant collaborations among home appliance manufacturers were witnessed.